Governmental Decree No. 945 validating Development Strategy of Joint Stock Company "National Company "Food Contract Corporation" for 2021 - 2030.

Development Strategy of Joint Stock Company "National Company "Food Contract Corporation" for 2021 – 2030 is a nationwide sectoral policy document, which establishes the mission of the Joint Stock Company "National Company "Food Contract Corporation", its vision, strategic directions, goal, objectives and key indicators of its activity until 2030. The mission of the Company is to participate in ensuring food security and contributing to the development of the grain sector of the Republic of Kazakhstan by performing the function of a grain market operator. The vision of the Company is a financially stable, steadily developing operating company that implements government policies in the grain market and meeting high standards of corporate governance.
The implementation of the mission of the Company is planned through the implementation of the following strategic areas of activity: (a) participation in ensuring food security and stabilizing the grain market; (b) contributing to the diversification of cultivated areas and financial support of the agro-industrial complex; (c) contributing to improving the quality and yield of crops; (d) promoting the creation of a sustainable fodder base of the agro-industrial complex; (e) promoting grain exports; and (f) improving the efficiency of the Company’s activities.
Joint Stock Company "National Company "Food Contract Corporation" is the successor of the domestic system of bakery products, which has a 100-year history of its development. In this connection, the Company's activity from the moment of its foundation is based first of all on state priorities on the grain market. The key function of Company is to maintain the reserve stock of food grain formed in the amount of 500,000 tons with a view of provision of the population in the event of emergency situations of natural and technogenic origin. As part of this function, the Company ensures that, as of December 31 of each year 500,000 tons of food grain are available in its resources as a reserve, which is quantitatively and qualitatively preserved and refreshed with grain of a new crop. Another important sectoral function of the Company is to stabilize the domestic grain market by conducting large-scale purchasing interventions in years of high yield and supplying grain to the domestic market at fixed prices in years of poor harvests and seasonal price rises. This regulatory measure is used by the state in order to avoid losses of grain producers due to falling grain prices and also in order to prevent flour and social bread costs increase during periods of sharp rises in grain prices on the domestic market.
The Company, as a state-owned company, has an influence on pricing in the domestic grain market through the establishment of purchasing prices. At the beginning of each season, under the influence of external factors, participants of the national grain market need a price guide for organizing further trade. In this regard, the purchasing prices of the Company is an important signal to the market, due to this fact, the Company's purchase prices are an important signal to the market, which contributes to the formation of fair market prices for grain producers, guaranteeing the profitability of production. With this leverage, the Company can influence market pricing even without the actual procurement of, or with the purchase of, minimal amounts of grain.
Through forward purchasing, the Company forms the necessary resources of grain for further performance of the stabilization function, refreshing the reserve of grain, trading operations on domestic and foreign markets, and solving other tasks. Farmers participating in this program have access to favorable financing in the springtime, which enables them in a timely manner to prepare for the sowing campaign (e.g., purchase of seeds, petrol and oil products, mineral fertilizers, etc.). In addition, the farmers have a guaranteed market for their produce regardless of the price situation after the new harvest.
Another important government task, in the implementation of which the Company is involved, is the promotion of the national grain exports. In this case, the main goal of the Company is not to create active competition for private domestic exporters, but to stabilize the supply of grain to prospective export destinations in order to preserve Kazakhstan's niche in important markets.
In order to promptly respond to changes in market conditions and the rational allocation of its resources, the Company on an ongoing basis through supporting business processes, conducts analysis of domestic and world grain markets and studies the needs of the domestic market for products and services, as well as prices for agricultural products and services, demand and supply by market participants throughout the season, conducts marketing of target markets and searching for new export niches, considers feasibility of government intervention if there is a need to stabilize prices.